The plan will be analyzed by a syndic appointed by the Bucharest Court, who will decide if Hidroelectrica may exit insolvency at the end of June or will continue reorganization.
“The syndic will issue a standpoint regarding the reorganization plan before June 26, when it will be decided if Hidroelectrica may exit insolvency. We will ask the syndic to validate the reorganization plan and if the judge approves it, the plan will be carried out in at most two years. Moreover, we will ask the syndic to confirm that all measures included in the plan have been implemented over the past months and to order the closure of the insolvency process,” Remus Borsa, the legal administrator of Hidroelectrica, told Mediafax Tuesday.
According to Borza, 98.7% of Hidroelectrica’s creditors approved the reorganization plan.
Firm Euro Insol, owned by Borza, was appointed legal administrator of the hydropower producer last summer. If Hidroelectrica exits insolvency on June 26, it will receive EUR2.2 million.
The value of receivables claimed by creditors amount to 5.4 billion lei (EUR1.2 billion), of which RON3.5 billion were acknowledged by Euro Insol.
Hidroelectrica entered insolvency in June 2012 after it sold electricity outside the energy exchange at prices below market levels.
It registered gross profit of RON380 million in the first five months of the year and expects gross profit of RON434 million in 2013. (EUR1=RON4.4801)